Mining volumes jump

Johannesburg – Figures released by Statistics SA show

that mining volumes jumped 4.6 percent year-on-year in February.

This was from the 1.4 percent year-on-year gain seen in January

– which is typically a lower month due to the annual holiday season – the numbers

showed on Thursday.

Production was up 2.9 percent month-on-month but remains

negative on a quarterly basis, the stats show.

Despite gold output falling 16.8 percent year-on-year, and

coal being down 9.4 percent, iron ore (+20.9 percent), manganese (+15.7 percent)

and PGM  (47.2 percent) production rose sharply, more than offsetting an

overall decline, FNB Senior Industrial Economist Jason Muscat notes.

Muscat notes the increase is welcome news in a week that

has seen poor manufacturing and retail trade sales data.

“Our view remains that better global growth (particularly

a stabilisation in China and infrastructure plans in the US) will continue to

buoy commodity prices and support production levels in the mining sector.

Read also:  Are we heading for a recession?

“Furthermore, the cessation of the drought this year

should also provide good growth to the agriculture sector, with the overall

primary sector contributing positively to gross domestic product.”

BUSINESS REPORT

ONLINE